Celgene leads biotech ascent

TedGriffith

NEW YORK (CBS.MW) -- Biotechnology stocks moved higher for a second straight session Friday, with shares of Celgene leading the ascent after the company said it began tests to determine if its drug, Thalomid, is an effective treatment for colorectal cancer.

Shares of Celgene
CELG, +0.51%
climbed $2.37, or 8.4 percent, to $30.74. Celgene said Friday that patient tests are under way to determine if its Thalomid, in combination with Roche's drug Xeloda, effectively treats colorectal cancer. Celgene also said the drugs would be tested in the treatment of a form of kidney cancer, which is less common than colorectal cancer.

Analyst Michael King at Robertson Stephens said the announcement indicates Celgene is making progress in its effort to expand the use of Thalomid.

"Colorectal cancer is the second most common cause of cancer deaths in the U.S. and represents a large potential market for Celgene," King wrote in a note to clients. "Over 135,000 people will be diagnosed with the disease this year."

Thalomid is Celgene's brand name for the drug, thalidomide, which was pulled from the market decades ago after it was shown to cause birth defects. In 1998, however, the U.S. Food and Drug Administration approved Celgene's application to sell the drug as a treatment for leprosy. The approval came with conditions, however, that restrict its use in pregnant women or women who might become pregnant.

Also on the rise Friday were shares of Icos, which gained 60 cents, or 1 percent, to $62.95. Icos
ICOS
and pharmaceutical partner Eli Lilly reported Friday that their treatment for impotence showed effectiveness in late-stage testing. The companies said that 85 percent of men who received the drug, Cialis, reported improved erections. Shares of Eli Lilly
LLY, +0.23%
added $1.60 to $86.30.

Among the day's biggest decliners was the stock of Immune Response, which plunged $2.72, or 55 percent, to $2.18. Immune Response
IMNR
disclosed Friday that its experimental treatment for the virus that causes AIDS failed to meet the company's goal of slowing the progression of the disease in patient testing. See full story.

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